Stocks Sink, Caterpillar, McDonald's, Arconic and Bayer - 5 Things You Must Know

Here are five things you must know for Tuesday, Oct. 23:

1. -- Stocks Dive on Growth and Trade Worries

U.S. stock futures tumbled sharply on Tuesday, Oct. 23, and global stocks slumped as investors focused on slowing economic growth and simmering geopolitical tensions ahead of a busy day for U.S. corporate earnings.

Caterpillar Inc. (CAT)  reported third-quarter adjusted profit of $2.86 a share, 3 cents higher than estimates. Revenue of $13.5 billion topped forecasts of $13.3 billion. The heavy machinery company said it expects full-year adjusted earnings of $11 to $12 a share. The stock fell 7.1% in premarket trading.

3M Co. (MMM)  fell 6.5% in premarket trading after third-quarter earnings of $2.58 a share came in below forecasts and the company lowered earnings guidance for 2018.

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McDonald's Corp.'s (MCD) third-quarter earnings of $2.10 a share beat Wall Street expectations of $1.98. Sales of $5.37 billion also topped forecasts. Same-restaurant sales in the quarter rose 4.2%. The stock rose 1.4%.

Verizon Communications Inc. (VZ)  posted third-quarter adjusted profit of $1.22 a share, 3 cents above estimates. Revenue of $32.61 billion topped forecasts of  $32.5 billion. Wireless revenue in the quarter rose 6.5% to $23 billion.

United Technologies Corp.'s  (UTX)  third-quarter adjusted profit of $1.93 beat analysts' estimates by 11 cents. Revenue of $3.44 billion beat forecasts of $3.33 billion. The company also raised its earnings and sales guidance for 2018.

Biogen Inc. (BIIB)  posted adjusted earnings in the third quarter of $7.40 a share, higher than estimates of $6.78 a share.

Harley-Davidson Inc. (HOG)   posted stronger-than-expected third-quarter earnings and confirmed its full-year shipping and profit margin guidance as the iconic motorcycle maker continues to move away from its trade war spat with Donald Trump.

Contracts tied to the Dow Jones Industrial Average plummeted 373 points, futures for the S&P 500 fell 37.75 points, and Nasdaq futures plunged 119 points.

A rally for Chinese stocks on Monday, which saw markets rise the most in nearly three years on reports of a $1.2 trillion tax cut that would shore up the flagging economy, faded, pulling the Shanghai Composite down 2.3% on Tuesday.

The economic calendar in the U.S. on Tuesday includes the Richmond Fed Manufacturing Index for October at 10 a.m. ET.

2. -- Arconic Is Mulling $11 Billion Offer From Apollo - Report

The board of Arconic Inc. (ARNC) , the aluminum products maker, is mulling an $11 billion acquisition offer it received Friday, Oct. 19, from buyout firm Apollo Global Management LLC (APO) , Reuters reported, citing people familiar with the matter.

Apollo's offer values Arconic at between $23 and $24 a share, according to one of the sources. Arconic shares closed at $21.45 on Monday and were rising 0.9% to $21.65 in premarket trading on Tuesday.

Another bidding group, made up of Blackstone Group L.P.  (BX) , Carlyle Group L.P.  (CG) , Onex Corp. and Canada Pension Plan Investment Board, has yet to submit an offer for Arconic, and it isn't clear whether it will submit a bid to rival Apollo's in the coming days, the sources told Reuters.

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3. -- Judge Reduces Jury Award Against Bayer's Roundup

A U.S. judge upheld a verdict that found weedkillers sold by Bayer AG's (BAYRY)  Monsanto franchise caused a California man's terminal cancer, but slashed the damage payout by nearly three quarters.

San Francisco Superior Court Judge Suzanne Bolanos followed up on a tentative ruling she issued earlier in the month, and said that the $250 million in punitive damages would be cut to an amount equal to the $39.25 million in compensatory damages that the jury found appropriate.

Bayer would need to pay the damages to Dewayne Johnson, a groundskeeper who worked for the San Francisco school district, who had argued that Monsanto's "Roundup" and "Ranger Pro" weedkillers, as well as its other glyphosate-based products, didn't carry sufficient warnings for the risks of cancer they carried.

"The court's decision to reduce the punitive damage award by more than $200 million is a step in the right direction, but we continue to believe that the liability verdict and damage awards are not supported by the evidence at trial or the law and plan to file an appeal with the California Court of Appeal," Bayer said in a statement.

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4. -- Uber's Top Dealmaker Resigns

Cameron Poetzscher, Uber Technologies Inc.'s top dealmaker, has resigned. His departure comes less than a month after an article in The Wall Street Journal revealed allegations of prior sexual misconduct in the office.

Poetzscher oversaw Uber's biggest deals, like the $7.7 billion investment from SoftBank Group Corp. and the sale of its Southeast Asia operations, the Journal noted.

Uber said Monday the resignation was effective immediately. Uber's new financial chief, Nelson Chai, will assume Poetzscher's responsibilities while the firm seeks a replacement, a spokesman told the Journal.

5. -- Walmart Expands Free Two-Day Shipping

Seeking to better compete with online retailing giant Amazon.co Inc. (AMZN) ahead of the holidays, Walmart Inc. (WMT) said it will work with third-party sellers to make millions of items available for free two-day shipping on orders of more than $35.

Previously, only select items were eligible for free two-day shipping. Walmart will begin to roll out the improvements in mid-November, according to the Associated Press.

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